The URL can be used to link to this page

042792 EDAOFFICIAL FILE COPY CITY OF NEW HOPE EDA AGENDA EDA Regular Meeting #5 Agenda #6 President Edward J. Erickson Commissioner W. Peter Enck Commissioner Gary L'Herault Commissioner Gerald Otten Commissioner Marky Williamson April 27, 1992 2. 3. 4. Call to Order Roll Call Approval of Minutes of April 13, 1992 Resolution Awarding Contract to Kevitt Excavating, Inc. for Excavation and Treatment of Gasoline Impacted Soils at 42nd/Nevada Avenues, Project No. 462 - $57,016 Motion Authorizing Executive Director to Sign Certificate of Completion for the Winnetka West Barrier-Free Housing Project {#466) Discussion Regarding Request by LaNel Financial Group, Inc. to Amend Assessment Agreement for New Hope Terrace Apartments 7. Adjournment Approved EDA Minutes Meeting #4 CITY OF NEW HOPE 4401Xylon Avenue North Hennepin County, Minnesota 55428 April 13, 1992 CALL TO ORDER ROLL CALL APPROVE HINUTES 42ND/NEVADA SOIL CLEANUP (#462) Item 4 ~OTION President Pro tem Enck called the meeting of the Economic Development Authority to order at 8:31 p.m. Present: Enck, L'Herault, Otten, Williamson Absent: Erickson Motion was made by Commissioner Otten, seconded by Commissioner Williamson, to approve the EDA minutes of March 23, 1992. All present voted in favor. Motion carried. President Pro tem Enck introduced for discussion Item 4, Approving Revised Corrective Action Design Workplan for 42nd/Nevada Avenue Soil Contamination Cleanup and Authorizing Advertisement for Bids to Excavate and Treat Impacted Soils - Project No. 462. Mr. Kirk McDonald, Management Assistant/Community Development Coordinator, explained that the action being requested is for the EDA to approve the revised Corrective Action Design Workplan for 42nd/Nevada Avenue soil contamination cleanup, prepared on behalf of the City by Northern Environmental and recently approved by the Minnesota ~Pollution Control Agency, and to authorize advertisement for bids for the soil excavation/treatment of impacted soils portion of the project. He reviewed events leading up to this point. He stated the PCA had requested additional information to define the magnitude and extend of petroleum contamination before they would allow the soils to be excavated or accept the workplan. Therefore, in July of 1991, the Council authorized Northern Environmental to conduct additional activities which included the drilling of five additional soil exploration borings on and off the site, three of which were completed as monitoring wells. The results of the investigation indicated that the contamination has been contained on-site. Mr. McDonald stated Petro Fund will pay for 90% and CDBG funds will pay the remaining 10% of the costs. Motion was made by Commissioner Otten, seconded by New Hope EDA Page 1 April 13, 1992 BID/SOIL CLEANUP Item 5 HOTION NEW HOPE TERRACE APARTMENTS Item 6 Commissioner L'Herault, approving revised corrective action design workplan for 42nd/Nevada Avenue soil contamination cleanup and authorizing advertisement for bids to excavate and treat impacted soils. All present voted in favor. Motion carried. President Pro tem Enck introduced for discussion Item 5, Approval of Bid Submitted by Bergerson-Caswell, Inc. for Groundwater Quality Monitoring Well Abandonment~ and Construction for 42nd/Nevada Avenue Soil Cleanup (Project #462), in the amount of $2,296. Mr. McDonald stated the bid is for abandoning a well and constructing a new well. The MPCA is requesting that a monitoring well at the location of the soils to be excavated be abandoned prior to excavation and that an additional groundwater monitoring well be constructed near Park Ridge Way Apartments after the excavation of contaminated soils. Motion was made by Commissioner L'Herault, seconded by Commissioner Otten, approving bid submitted by Bergerson- Caswell, Inc. for groundwater quality monitoring well abandonment and construction for 42nd/Nevada Avenue soil cleanup (Project #462), in the amount of $2,296. All present voted in favor. Motion carried. President Pro Tem Enck introduced for discussion Item 6, Discussion Regarding Request by LaNel Financial Group, Inc. to Amend Assessment Agreement for New Hope Terrace Apartments. Mr. Donahue explained that LaNel is the new owner of New Hope Terrace Apartments on 36th Avenue west of the railroad tracks. He indicated that LaNel has approached the City regarding changing the assessment agreement which was originally made in 1986-87 between the City and the developers of the property which guaranteed a certain minimum market value of the apartment project in order to pay off housing bonds. Mr. Donahue stated the life of the bonds will run through 2004 and the City does not need to change the assessment agreement if it does not desire to do so. He reviewed scenarios discussed with LaNel which may advantageous to the City. One of the options is to retain 10 of the original 30 low and moderate income apartments for the life of the bond issue (until year 2004) if the City would amend the assessment agreement. The amendment would include allowing the market value to be set by the assessor free of any artificial limits such as a 2% New Hope EDA Page 2 April 13, 1992 increase. He nOted a minimum'market value should be established to ensure a certain tax flow until the bonds are paid off. Mr. Donahue illustrated tax projections based on the current assessment agreement. He stated the owners would be required to pay $269,000 in taxes next year. If the agreement was amended, based on $5.5 million, $233,000 would be generated in taxes, or a tax savings to the apartment owners of $36,000. The City's analysis would show that if the owners provided 10 units of apartments at $200 per month or $24,000/year, LaNel would have a net tax savings of $12,000. He also reviewed the projections for year 2003. The cost of providing the 10 units would be $29,000 and the owner would have a tax savings of approximately $15,000. Mr. Donahue stated 2/3 of the savings would be for the public good and 1/3 to the apartments owner. He informed the EDA that Paul Brewer from LaNel Financial Group is present to answer or clarify questions. Commissioner Williamson questioned the current market value. Mr. Donahue stated the payable 1993 market value is $6.4 million (which would generate $269,000 in taxes). Mr. Donahue stated at the current time there is an excess of $500,000 in reserves which would meet two years of bond payments. Under the current agreement it is projected to be $1.5 million. When the bonds are paid off, the money is to be redistributed to the taxing jurisdictions or 7% to the City (17% less 10%). He stated if the EDA agrees to the change, the excess increment will not continue to build, but rather the funds will subsidize the housing. The approximate cost would be between $120,000 to $150,000. President Pro tem Enck commented that this happens to be one project which the City planned well. Mr. Donahue noted that he is aware of no other city which has undertaken changes to assessment agreements to benefit low and moderate income housing. Mr. Brewer, LaNel, was recognized and stated New Hope Terrace Apartments was purchased for $5.5 million dollars which was substantially less than the value stated on the assessment agreement. He noted when the property was purchased real estate taxes were considered. He stated it New Hope EDA Page 3 April 13, 1992 is their goal to get taxes in line with the value. He stated he recognized the property had 30 units designated as low income rentals which the previous owner rented for less than the market rental rate. He stated the units were primarily rented by low-income elderly persons. Mr. Brewer continued stating that in this area LaNel currently has over 1,000 units of multi-family housing, two of which are Anthony James and Broadway Village Apartments which are mostly elderly. Because of this, LaNel did not want to lose the current tenants at New Hope Terrace even though they were subsidized, yet at the same time the property could not be economically operated with 30 low- income units. Mr. Brewer reviewed his proposal regarding reduction of the market value. He stated it would not jeopardize the tax increment financing which exists on the property as there is sufficient reserves. He emphasized the assessment agreement amendment would not only benefit LaNel as a property owner operating on an economic basis but would also meet and retain some of the City's low-income housing needs. Commissioner L'Herault questionedwhether the negotiated purchase price was a reflection of the tax situation. Mr. Brewer stated that was not the controlling factor as a number of buyers were competing for the property. He noted the elimination of the low income units makes up part of the difference. However, it would be nice to retain the current low-income tenants since they have proven to be good tenants. Commissioner L'Herault again questioned if the tax burden was reflected in the purchase price. Mr. Brewer replied that he could not say that it had a direct impact although it may have indirectly entered into the offer. He stated the purchase price was determined based upon the projected revenues generated from the property. President Pro tem Enck stated the change in valuation would amount to $450,000 over a lO-year period. He pointed out that the City has an obligation to the taxing districts by maintaining the agreement. He remarked that a benefit would be given to one {property owner and recipients of low-income housing} at the expense of another {taxing districts such as the schools). He expressed displeasure with the City being perceived as New Hope EDA Page 4 April 13, 1992 the cause behind the elim~nati°n of the low-income housing units. He pointed out that the agreement was in place when the property was purchased and the apartment complex was purchased at a discounted price. Mr. Donahue asked the EDA for direction as to whether or not to proceed. He reiterated President Pro tem Enck's comment regarding the benefit to one at the expense of another. Ms. Colleen Barstein was recognized and stated she resides at the New Hope Terrace Apartment. She has been living with her mother in a 2-bedroom subsidized apartment for four years. She indicated she was shocked to learn of the $250 increase in rent with the elimination of the subsidized rent. Ms. Barstein stated she would like to continue living in New Hope and urged the EDA to reach a compromise for the continuation of the subsidized program. She indicated without the subsidized housing, people will be forced to move out or pay the $700 rent. It will be difficult to find another place to live especially since many of the affected persons are elderly. She noted they view the apartments as their home. She commented that the merchants at Winnetka Commons Shopping Center may be affected by the tenants relocating. President Pro tem Enck expressed empathy and stated it is a difficult dilemma. He inquired of the occupancy rate. He noted even if there was a change in the agreement, 2 of the 3 tenants would be adversely impacted since there would be only 10 rather than 30 subsidized units. Mr. Brewer stated the apartments are 95% occupied and the market in New Hope is good. Commissioner Otten inquired of alternate subsidized housing within the City. Mr. Donahue reported that the options are limited. Section 8 is the predominant program; however, the waiting list is about 5 years. He stated Metro Housing was contacted regarding emergency housing in the form of vouchers but the hardship would not qualify under its "emergency" program. He mentioned senior apartment complexes within the City: AnthonyJames, Chardon Courts, St. Therese, and North Ridge Apartments. Commissioner Williamson questioned how the program was New Hope EDA Page 5 April 13, 1992 subsidized or how the apartment owners were reimbursed. Mr. Brewer explained that there was no reimbursement; the owners were required to provide 20% of the units at a reduced rate that met the federal guidelines. Mr. Sondrall, City Attorney, reported that an annual certification was submitted to the City and the County. Commissioner Williamson stated it is a serious issue and she hopes Mr. Brewer can find a way to continue the program. She stated it is difficult to find subsidized housing as clean and well operated as New Hope Terrace Apartments. She asked how many units of the subsidized units are currently occupied. Mr. Brewer replied that there are 16 or 17 apartments. Ms. Williamson questioned whether Mr. Brewer is confident that he could maintain a 95% occupancy at the full-market rate. Mr. Brewer replied that he believes they can. He noted that New Hope has an overall vacancy of 3% and the market is very tight. He noted last year Anthony James Apartments had 1/10 of 1% vacancy. He stated the normal turnover on an apartment project is 50-60% of its units whereas in a senior complex, turnover of 15-20% is high. Commissioner Otten inquired whether Hennepin County will be assessing the property. Mr. Donahue stated the assessment agreement sets the market value and the escalator is an automatic 2% until the life of the contract. Commissioner Otten noted it is a private venture and it appears there is little the City can do regarding the market value set by the contract. He conveyed he does not feel the City should be lowering the taxes at this time. Commissioner Williamson indicated philosophically she agrees with Commissioner Otten; however because the City originally put stipulations on the property at the time of construction, she feels the City has a responsibility to the residents to maintain the subsidized housing end of the agreement. Commissioner L'Herault stated it was a package and one has to use caution when identifying only part of the New Hope EDA Page 6 April 13, 1992 AUTOHAUS - #467 Item 7 ~OTION OTHER BUSINESS Prism agreement. Commissioner L'Herault asked whether it can be approached another way without impacting the taxing districts. President Pro tem Enck stated the lower market value will enable the bonds to be paid off; however, there will be less money going into the pool and little surplus to be redistributed at the end of the contract. He noted he does not feel the City should be changing contracts and he has not seen anything sufficient enough to warrant a change to the contract. Mr. Donahue commented that in the year 2004, the City would gain $250,000 with the contract as is. If the contract is changed as proposed, the City would gain $100,000. Therefore, the housing subsidy program could be viewed as costing the City $150,000. Mr. Donahue inquired whether the EDA desires staff to discuss the matter with the County and/or School District for their input. Commissioner Williamson indicated that she would like President Erickson's input regarding the proposal. President Pro tem Enck commented that it is appropriate to have all members actively participate in the decision. He directed staff to bring the item back on the April 27th agenda for discussion. President Pro tem Enck introduced for discussion Item 7, Request for Extension on Development Contract Improvements - Autohaus (#467). Mr. Donahue stated staff has met with Autohaus and is recommending to table further consideration on this item until the May 11th meeting. Motion was made by Commissioner Otten, seconded by L'Herault, to table until May 11, lgg2, the request by Autohaus for an extension on their development contract improvements. All present voted in favor. Motion carried. Mr. Donahue informed the EDA that PRISM continues to be interested in obtaining the City-owned property on 42nd/Nevada Avenue for a new facility. He stated they have retained an architect and have developed conceptual drawings which they wish to present to the EDA. The drawings are in the Mayor's office for the EDA to review. He informed the EDA that PRISM would like to meet New Hope EDA Page 7 April 13, 1992 AD~OURNHENT individually with the EDA Commissioners. Mr. Donahue noted if the conceptual plan is agreed upon, PRISM plans to raise $500,000. He stated the Building Official has met and discussed all of the standards necessary for that property. President Pro tem Enck'questioned the value of the property and noted that PRISM is still asking the City to donate the property. Mr. Donahue indicated the property is valued at $200,000 to $250,000. He stated it was purchased with CDBG money so it must be used for a qualifying use or if it is sold at a commercial rate, the money must be put back into the pool for redistribution. He indicated part of the money could be used for other qualifying programs. Commissioner Williamson inquired whether the property would be taxable. Mr. Donahue stated he believes it would be a taxable agency; however, that is not definite. He will be discussing it with the County Assessor. He reiterated that the drawing is in the Mayor's office and asked the EDA to review it. Motion was made by Commissioner L'Herault, seconded by Commissioner Williamson, to adjourn the EDA meeting as there was no further business to come before the Council. All present voted in favor. The New Hope EDA adjourned at 9:35 p.m. Respectful ly submitted, Valerie Leone City Clerk New Hope EDA Page 8 April 13, 1992 EDA REQUF~T FOR ACTION Originating Depax/ment City Manager Kirk McDonald Management Assistant Approved for Agenda 4-27-92 Agenda SeCtion EDA Item No. 4 RESOLUTION EXCAVATION 42ND/NEVADA AWARDING CONTRACT TO KEVrI'T EXCAVATING, INC. FOR AND TREATMENT OF GASOLINE IMPACTED SOILS AT AVENUES, PROJECT NO. 462 Bids were opened on April 21st for the excavation, treatment and/or disposal of "source area,' gasoline impacted soils at 42nd/Nevada Avenues. Five bids were received per the attached bid tabulation sheet. The low bid was submitted by Kevitt Excavating, Inc. in the amount of $57,016.00 and Northern Environmental, the city's consultant for this project, recommends awarding the bid to the low bidder. The soils will be excavated and disposed of by land application at an MPCA approved site. The work is expected to take place the second week in May. Staff recommends approval of the low bid submitted by Kevitt Excavating in the amount of $57,016.00. Review: Administration: Finance: RFA-O01 CITY OF NEW HOPE RESOLUTION NO. 92- RESOLUTION AWARDING CONTRACT TO KEVITT EXCAVATING, INC. FOR EXCAVATION AND TREATMENT OF GASOLINE IMPACTED SOILS AT 42ND/NEVADA AVENUES PROJECT 462 - $57,016 BE IT RESOLVED by the City of New Hope as follows: That bids for the excavation, treatment and/or disposal of "source area" gasoline impacted soils at 42nd/Nevada Avenues were duly opened at the New Hope City Hall, 4401Xylon Avenue North, at 11:30 a.m. on the 21st day of April, 1992. Company Kevitt Excavating C.S. McCrossan Becklin Bros. Jay Bros., Inc. Pump & Service Bid Price $57,016.00 62,101.04 66,455.00 68,107.50 75,705.00 That advertisement for bids for said purchase was published in the New Hope-Golden Valley Sun Post, the official newspaper of the City. It has been determined that the lowest responsible bidder is Kevitt Excavating for $57,016.00. e The Mayor and Manager are authorized and directed to enter into an agreement with Kevitt Excavating, Inc. for Project No. 462. The City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposit of the successful bidder shall be retained until a contract has been signed. Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 27th day of April, 1992. Mayor Attest: City Clerk Northern Environmental Hydrotog/sts · Engineers ° Geologists 372 West County ,¢cad -,~ New Brighton, MN 55112 1-612-635.9100 April 23, 1992 (BRA230309) Honorable City Council City of New Hope 4402 Xylon Avenue North New Hope, Minnesota 55427 RE: "Source Area" Soil Excavation, Treatment, and/or Disposal, 42nd and Nevada Avenue Property, New Hope, Minnesota Dear Council Members: Enclosed please find copies of five bid letters submitted to the City of New Hope (the City) to excavate, treat, and/or dispose of petroleum-affected soil present at the City's 42nd and Nevada Avenue property (the Property). These bids are summarized in the attact~ed "Bid Tabulation" table. Following review of the bid letters, Northern Environmental Technologies, Incorporated (Northern Environmental), the City's consulting engineer for this project, recommends that Kevitt Excavating, Incorporated (Kevitt) of 7324 33rd Avenue North, Minneapolis, Minnesota be awarded the contract based on the Iow total bid of $57,016.00. Provisions of the contract specify that the contractor will be responsible for the preservation of all property, trees, utilities, etc., adjacent to the roadways, including the roadways, and shall use every precaution necessary to prevent damage or injury thereto. Consequently, all excavation activities at the Property will be conducted at least 10 feet from the roadways. It is understood that excavated "source area" soils will be treated by land application per'Option 1 of the bid letter at a Minnesota Pollution Control Agency (MPCA) approved site. This work is tentatively scheduled for the second week of May depending upon the removal of road restrictions and the receipt of approval for a land application site. t trust this information meets your needs at this time. If you have any. questions, please feel free to call. Sincerely, Northem Environmental Technologies, Incorporated Bruce Rehwaldt, P.E. Director of Operations enclosures a subsidiary of Bonestroo, Rosene, Andedik and Associates, Inc. Engineers & Architects · St. Paul, Minnesota Pm]oct Nan~ 42nd ~v~ & N¢~mda Ave ~Source Ar~" So~ Excavation, Trcatmcm &/or IX~posaI "- I ~ certify ~ tl~ is an exact BID TABULATION Tabulation of Five Low ]fids of Five Received Unit ~zflt Um~t ~n~t U~t I ~ mr..7~tim with C.,oi:Im' ~-'tale F..A I L~0 l.~' 1.~' 1.~0 2 Clearing & ~'al~ain~ TR $ 115.00 F_.~vate petn:de~m oa~t~mlr~,te~I Remo~ & d~ of ocmcrete fonndalk~ CY 50 25.00 1,2:50.00' 'total Paa A - E:r.~',r~ .,~i, ritim 3~III.TA.B BT-1 ~. Item Unit Bid N~. 2 CS. M~ I~N~ 3 Unit To~i Um~t No. 4 Jay B~che~ l. ac, B~N~5 l"~mp & Meter Unit Ul~t U~lt ?art B - Tre~an~t &~ Disp¢~ Optica 1 - Off-.~ite Land Apt~on &~ 'mc .s g~li~) wi~ 4 sampI~; per ev~t 1,250 12.10 Z2.50 4~750.~0 150.00 1~.50 I6,875.00 10 t~il~uate & dispose ¢~ ¢:zavm~ ~uiis CY MIll.TAB 1250 1,812.50 5.32 C) · id N~. L Keviu Bid N'o. 2 Uad! T~nd ~MN~. 4 Jay Broth~ Unil Bid No. 5 Pump & Met~ UmR Tolal 11 1,95 0.$1 0.04 7.99 ?.16 8.950.00 Toud Olxio~ 2 - Oi:-$ile l,uc~tioe $52,95'7.54 Optkm 3 - On-Sitc In~,cEat~3 14 bM:~neulc sot~ 16 & oompact CY 1.250 34111.T_AB BT-3 Item Kevitt UnU Unit Uni~ Uuil Psk:t T~la] ~ To~l ]srk~ ~T~o_.t~l ~ T~gM ]sdc~ Total 17 To/no~l ~sow 19 ~ CY 250 5.~ 9.50 2375.00 10.0~ 7.00 1,750.00 AC 0.5 .Z250.0~ 1,125.00 1,500.00 750.00 1,~00.0,D 500.~ I,I~0.00 $50Jl,0 1,~00.00 600.00 bY' 50 330 165.0D 250 125.00 6.0,0 34X1'.00 2.05 10250 14.10 705.00 Tea,al ?a~t C - F'mi~ag A,ai,,ilies s3.055.oo 34111 .TAB BT--,{ Bid No. 1 P'~p & Meter Sereice, lac. IJnlt ~nit Uii~ UlllI lhlil Pske Te~al ~.. Tolal ~ Total ~ Total l'Y,c, T~:~d 6.32~.00 $,913.50 6,800.~0 4~00.00 8,550.00 52,937.54 S~5.0~ 0.00 60,455.~0 To~al ~ C - Fmlsl~g ~ 2,.540.00 ~,'~.90 2.,~0 ~,1)'~0 3.~55~0 To~ Ba~ B~d $57..016.00 $66,455.00 $75,3O5.0O 341 i LTAB 1~1'-5 II II IIIII II II I I IIII I I IIIIII I Bid No. ! Bid No. ~ I~d No. 3 Bid No. ~ Bid No. $ 5% Bid Bo'ad 5% Bid Boad 5% Bid ~ .5% Bid Bond 5% Bid Bond Kevi~t CS. McCrossaa Be. cEia Brottr~ ~ay Brothers, Ira: lh~m? & Me.t~r Scott ~ Joseph M~ [William Boddia Mar~ R. lay Jost~ ~ ~rd Ay N ~ Jeff~ H~ 3175 ~ A~ ~ ~ ~ ~ 1~ ~ B~d 5~ 5~t0 ~ 5~ 5~ 3411 l.T. auB BT-~ ADVERTISEMENT FOR BIDS Sealed bids will be received by the City of New Hope, Minnesota in the City Hall at 4401 Xylon Avenue until 11:30 A.M., C.D.S.T., on Tuesday, April 21, 1992, at which time they will be publicly opened and read aloud for the furnishing of all labor and materials and all else necessary for the following: New Hope 42nd Avenue and Nevada Avenue - City Project No. 462 "Source Area" Soil Excavation. Treatment and/or Disposal 1,250 CY Excavate Contaminated "Source Area" Soils Including, Miscellaneous Site Improvements and Correlated Appurtenances. Plans and specifications, proposal forms and contract documents may be seen at the office of the City Clerk, New Hope Minnesota, and at the office of Northern Environmental Technologies, Inc., 372 West County Road D, New Brighton, MN 55112 (612) 635-9100. Each bid shall be accompanied by a bidder's bond naming the City of New Hope as obligee, certified check payable to the Clerk of the City of New Hope or a cash deposit equal to at least five percent (5%) of the amount of the bid, which shall be forfeited to the City in the event that the bidder fails to enter into a contract. The City Council reserves the fight to retain the deposits of the three lowest bidders for a period not to exceed 45 days after the date and time set for the opening of bids. No bids may be withdrawn for a period of forty-five (45) days after the date and time set for the opening of bids. Payment for the work will be by cash or check. Contractors desiring a copy of the plans and specifications and proposal forms may obtain them from the office of Northern Environmental Technologies, Inc., upon payment of a deposit of $25.00. See "Information to Bidders" for plan/specification deposit refund policy. The City Council reserves the right to reject any .and all bids, to waive irregularities and informalities therein and further reserves the right to award the contract to the best interests of the City. Daniel Donahue, Manager City of New Hope, Minnesota 34111(358) NEW HOPE ~MN. 42nd .and NEVADA AVENUE File No BRA230309 BID DATE: APRIL 21, 1992 BID TIME: ll:30AM C.S.D.T. CONTRACTORS TOTAL BASE BID 1. M & M CONSTRUCTION BEC IN BROS. 4. RYBAK EXCAVATING .' C.S.MCCROSSAN ~ JAY BROS, INC. 7. RRM CONSTRUCTION 8. CONTECK 9. ASSOCIATED CONSTRUCTION ~TERPRISES 12. BID COPY 'SOURCE AREA" SOIL EXCAVATION, TREATMENT, AND/OR DISPOSAL 42.ND AND NEVADA AVENUES NEW HOPE, MINNESOTA 55427 Honorable City Council City of New Hope 4402 Xylon Avenue North New Hope, Minnesota, 55427 Bid Due 04/21/92 Dear Council Members: The undersigned, being familiar with the subject site and local conditions, having studied the attached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish all labor, tools, materials, skills, equipment and all else necessary to complete the project in accordance with the attached description of work. Item Unit Estimated Unit Total Number of Cost Cost Units EXCAVATION ACTIVITIES Clear Utilities Each with Gopher State Clearing and Grubbing Excavate Petroleum Contaminated "Source Area" Soils Remove and Dispose Concrete Foundation Subtotal Tree 5 $ ..!.i~,~'£ $ Cubic Yard 1,250 $ ~ ~.-'.C $ -/Z' 5-CC "-:' Cubic Yard 50 $ ? ~ ''£ $ /~? .~" -~'' Three options have been identified as acceptable for the disposal and/or treatment of petroleum impacted soils at the site. Contractors may provide an estimate for more than one option, however, the contract will be awarded based on the Iow combined total of all work. OFF-SITE TREATMENT AND/OR DISPOSAL Option I: Land Application Transportation 1,250 Land Apply Excavated 1,250 Soils Backfill Excavation With Cubic Yard 1,250 Common Borrow and Compact Soil Monitoring (Laboratory Analysis of THC as Gasoline) cub,c Yard$ $ Cubic Yard $ ~f~, ~-~ $ ~,~, /~-~- ~ Events 3 $ ~-C-~ $ //~'-C'~ (four samples per event) ,~ j/~-: /~ ~._~. ~ 1,250 $ $ 1,250 $__ $ Option 2: Off-Site Incineration Transportation Cubic Yard Incinerate and Dispose Cubic Yard Excavated Soils Backfill Excavation With Cubic Yard Common Borrow and Compact Post-Burn Analyses Each (BETX, Lead, and THC) Subtotal 1,250 $ $ 4 S $ ON-SITE TREATMENT AND/OR DISPOSAL Option 3 · On-Site Incineration Mobilization Lump Sum I $ $ Incinerate Soil Cubic Yard 1,250 $ $ Backfill Excavation With Cubic Yard Treated Soil and Compact 1,250 $ $ Post-Burn Analyses (BETX, Lead, and THC) Each 4 $ $ Subtotal $ FIN~HING ACTlVmES Topsoil Borrow Seed, Fertilizer, and Mulch Erosion Mats Subtotal Cubic Yard 250 $ ~.,~-~'C $ / ~ _~ - Acres 0.5 $.~.7-:~'C'~ $ /i/;~~--~ Square Yard 50 $ 3. ~ C $ /~:~-' ~' Total Bid $ ~ ~ j ~' / The final amount of the contract shall be determined by multiplying the final measured quantities of the various items by the unit prices stated. The actual volume of soil excavated at the site for treatment will be determined in the field by a truck-count and/or by measuring the final excavation. In submitting this bid it is understood that the owner retains the right to reject any and all bids and to waive irregularities and informalities therein and to award the contract in the best interests of the owner. It is understood that bids may not be withdrawn for a period of 30 days after the date on the bid form. Respectfully Submitted, [Date Name of Bidder Telephone No. City, Printed Name of Signer Address (A Corporatio____n)__- (An Individual) (A Partnership) I /~1/ ~ ~ ~.~ -' . St'ate & Zip Code COPY 'SOURCE AREA' SOIL EXCAVATION, TREATMENT, AND/OR DISPOSAL 42ND AND NEVADA AVENUES NH HOPE, MINNESOTA 55427 Honorable City Council City of New Hope 4402 Xylon Avenue North New Hope, Minnesota, 55427 Bid Due 04¢21/92 Dear Council Members: The undersigned, being familiar with the subject site and local conditions, having studied the attached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish all labor, tools, materials, skills, equipment and all else necessary to complete the project in accordance with the attached description of work. item Unit Estimated Unit Total Number of Cost Cost Units EXCAVATION ACTIVITIES Clear Utilities Each 1 $ '~, ~ $ with Gopher State Clearing and Grubbing Excavate Petroleum Contaminated "Source Area" Soils Remove and Dispose Concrete Foundation Tree Cubic Yard Cubic Yard 50 $ .,~t. ~ $ ,, ~ 50.. ct Subtotal Three options have been identified as acceptable for the disposal and/or treatment of petroleum impacted soils at the site. Contractors may provide an estimate for more than one option, however, the contract will be awarded based on the Iow combined total of all work. OFF-SITE TREATMENT AND/OR DISPOSAL Option 1: Land Application Transportation Land Apply Excavated Soils Cubic Yard 1,250 $ $ Cubic Yard 1,250 $ $ Backfill Excavation With Cubic Yard Common Borrow and Compact 1,250 $ $ Soil Monitoring (Laboratory Analysis of THC as Gasoline) Events (four samples per event) 3 $ $ Option 2: Off-Site Incineration Transportation Cubic Yard Incinerate and Dispose Cubic Yard Excavated Soils 1,250 $ ~. ~ 1,250 $ ~.~. Back/ill Excavation With Cubic Yard 1,250 Common Borrow and Compact Post-Burn Analyses Each 4 (BETX, Lead, and THC) Subtotal ON-SiTE TREATMENT AND/OR DISPOSAL Option 3: On-Site Incineration Mobilization Lump Sum Incinerate Soil Cubic Yard 1,250 Backfill Excavation With Cubic Yard Treated Soil and Compact 1,250 Post-Burn Analyses (BETX, Lead, and THC) Each 4 $ $ Subtotal $ FINISHING ACTNmES Topsoil Borrow Seed, Fertilizer, and Mulch Erosion Mats Subtotal Cubic Yard 250 $ ~ ~e $ ;, ~-'i5, OC Acres 0.5 $ \ ~'^~c__~ c~"~ $~ 50. ~ Square Yard 50 $ ~. ~c. $ ~ ~. c~ Total Bid $~',. C¼ The final amount of the contract shall be determined by multiplying the final measured quantities of the various items by the unit prices stated. The actual volume of soil excavated at the site for treatment will be determined in the field by a truck-count and/or by measuring the final excavation. In submitting this bid it is understood that the owner retains the right to reject any and all bids and to waive irregularities and informalities therein and to award the contract in the best interests of the owner. It is understood that bids may not be withdrawn for a period of 30 days after the date on the bid form. Respectfully Submitted, Date Telephone No. Name of Bidder / Title ~ -, (: ,~_ .~-~-~.;~, Printed Name of Signer Address City, State & Zip Code ,,~A Corpo~2 (An Individual) (A Partnership) 8ID COPY "SOURCE AREA' SOIL EXCAVATION, TREATMENT, AND/OR DISPOSAL 42ND AND NEVADA AVENUES NEW HOPE, MINNESOTA 55427 Honorable City Council City of New Hope 4402 Xylon Avenue North New Hope, Minnesota, 55427 Bid Due 04/21/92 Dear Council Members: The undersigned, being familiar with the subject site and local conditions, having studied the attached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish all labor, tools, materials, skills, equipment and all else necessary to complete the project in accordance with the attached description of work. Item Unit Estimated Unit Total Number of Cost Cost Units EXCAVATION ACTIVITIES Clear Utilities Each 1 $ ~'C~. 64.' $ ~]. ~.~, with Gopher State Clearing and Grubbing Excavate Petroleum Contaminated "Source Area" Soils Remove and Dispose Concrete Foundation Tree 5 Cubic Yard 1,250 Cubic Yard Three options have been identified as acceptable for the disposal and/or treatment of petroleum impacted soils at the site. Contractors may provide an estimate for more than one option, however, the contract will be awarded based on the Iow combined total of all work. OFF-SrrE TREATMENT AND/OR DISPOSAL Option 1: Land Application Transportation 1,250 Land Apply Excavated 1,250 Soils Backfill Excavation With Cubic Yard 1,250 Common Borrow and Compact Soil Monitoring (Laboratory Analysis of THC as Gasoline) Cubic Yard Cubic Yard Events (four samples per event) Option 2: Off-Site Incineration ~ U Jr Transportation Cubic Yard $ 3.f,:' $ 1,25O Incinerate and Dispose Excavated Soils Cubic Yard 1,250 $ Backfill Excavation With Cubic Yard 1,250 Common Borrow and Compact Post-Burn Analyses Each 4 (BETX, Lead, and THC) Subtotal ON-sITE TREATMENT AND/OR DISPOSAL Option 3 · On-Site Incineration ~,t u ~L Mobilization Lump Sum 1 Incinerate Soil Cubic Yard 1,250 Backfill Excavation With Cubic Yard Treated Soil and Compact 1,250 Post-Burn Analyses (BETX, Lead, and THC) Each 4 $ $ su,:,tot,, $ :3'7 3 5'5, FINISHING ACTlVmES Topsoil Borrow Seed, Fertilizer, and Mulch Erosion Mats Subtotal Cubic Yard 250 $ Acres 0.5 $ / ¢'C'E-' ~' ~. $ ~f.~(;". ~,~, Square Yard 50 $ ~'. s The final amount of the contract shall be determined by multiplying the final measured quantities of the various items by the unit prices stated. The actual volume of soil excavated at the site for treatment will be determined in the field by a truck-count and/or by measuring the final excavation, in submitting this bid it is understood that the owner retains the right to reject any and all bids and to waive irregularities and informalities therein and to award the contract in the best interests of the owner. It is understood that bids may not be withdrawn for a period of 30 days after the date on the bid form. Respectfully Submitted, Date Name of Bidder Printed Name of Signer Address St~[t'e & Zip Code Telephone No. City, i'vE (A Corporation) (An Individual) · (A Partnership) COPY 'SOURCE AREA' SOIL EXCAVATION, TREATMENT, AND/OR DISPOSAL 42ND AND NEVADA AVENUES NEW HOPE, MINNESOTA 55427 Honorable City Council City of New Hope 4402 Xylon Avenue North New Hope, Minnesota, 55427 Due 04/21/92 Dear Council Members: The undersigned, being familiar with the subject site and local conditions, having studied the attached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish all labor, tools, materials, skills, equipment and all else necessary to complete the project in accordance with the attached description of work. Item Unit Estimated Unit Total Number of Cost Cost Units EXCAVATION ACTIVITIES Clear Utilities Each 1 $ -0- $ -0- with Gopher State Clearing and Grubbing Excavate Petroleum Contaminated "Source Area" Soils Remove and Dispose Concrete Foundation Tree 5 $ 40.00 $ 200.00 Cubic Yard 1,250 $ 3.04 $ 3,800.00 Cubic Yard 50 $10.00 $ 500.00 Subtotal $ 4,500.00 Three options I~ave been identified as acceptable for the disposal and/or treatment of petroleum impacted soils at the site. Contractors may provide an estimate for more than one option, however, the contract will be awarded based on the Iow combined total of all work. OFF-SITE TREATMENT AND/OR DISPOSAL Option I: Land Application Transportation Land Apply Excavated Soils Cubic Yard 1,250 $ $ N0 BID N0 BID Cubic Yard 1,250 $ $ Backfill Excavation With Cubic Yard Common Borrow and Compact Soil Monitoring (Laboratory Analysis of THC as Gasoline) Events (four samples per event) 1,250 $ $ NO BID 3 $ $ NO BID Option 2: Off-Site Incineration Transportation Incinerate and Dispose Excavated Soils Backfill Excavation With Cubic Yard Cubic Yard Cubic Yard Common Borrow and Compact 1,250 $ 1.45 $ 1,812.50 1,250 $ 38.54 $ 48,175.00 1,250 $ 7.99 $ 9,987.50 Post-Burn Analyses (BETX, Lead, and THC) Subtotal Each 4 $ 120.00 $ 480.00 $ 60,455.00 ON-SITE TREATMENT AND/OR DISPOSAL Option 3: On-Site Incineration Mobilization Lump Sum 1 Incinerate Soil Cubic Yard 1,250 $ $ NO BID $ $ NO Backfill Excavation With Treated Soil and Compact Post-Burn Analyses (BETX, Lead, and THC) Cubic Yard 1,250 Each 4 $ $ NO BID $ $ NO BID Subtotal $ NO BID FINISHING ACTIVITIES Topsoil Borrow Seed, Fertilizer, and Mulch Erosion Mats Subtotal Cubic Yard 250 $ Acres 0.5 $ Square Yard 50 $~ 10. O0 1100. O0 2.05 $ 2,500.00 $ 550.00 $ lo2.5Q $ 3,152.50 Total Bid $ 68,107.50 The final amount of the contract shall be determined by multiplying the final measured quantifies of the various items by the unit prices stated. The actual volume of soil excavated at the site for treatment will be determined in the field by a truck-count and/or by measuring the final excavation. In submitting this bid it is understood that the owner retains the right to reject any and all bids and to waive irregularities and informalities therein and to award the contract in the best interests of the owner. It is understood that bids may not be withdrawn for a period of 30 days after the date on the bid form. Respectfully Submitted, (A Corporation) April 21, !992 Jay Bros., Inc. Date Name of Bidder Title -5~'~-<. / Mark R. Jay 612/429 4363 Printed Name of Signer 2209 Phelps Road Address Hugo MN 55038 Telephone No. City, State & Zip Code BID COPY 'SOURCE AREA' SOIL EXCAVATION, TREATMENT, AND/OR DISPOSAL 42ND AND NEVADA AVENUES NEW HOPE, MINNESOTA 55427 Honorable City Council City of New Hope 4402 Xylon Avenue North New Hope, Minnesota, 55427 Bid Due 04/21/92 Dear Council Members: The undersigned, being familiar with the subiect site and ioca! conditions, having studied the at-[ached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish all labor, tools, materials, skills, equipment and al! else necessa~ to comDtete the project in accordance with the attached ciescription of work. Item Unit EstimaTed Unit Total Number of Cost Cost Units EXCAVATION ACTIVITIES Clear Utilities Each with Gopher State Clearing and Grubbing Excavate Petroleum Contaminated "Source Area" Soils Remove and Dispose Concrete Foundation Tree Cubic Yard Cubic Yard 200.00 $ 200.00 5 $ ~50.00 $.3.25.(L.00 1,250 $ 4.00 $ 5000.00 50 $ 42.00 $ 2ZO0.O0 Subtotal $ 8550.00 Three options have been identified as acceptable for the disposal and/or treatment of petroleum impacted soils at the site. Contractors may provide an estimate for more than one option, however, the contract will be awarded based on the Iow combined total of all work. OFF-SITE TREATMENT AND/OR DISPOSAL Option I: Land Application Transportation Land Apply ExCavated Soils Cubic Yard 1,250 $ 13.50 $16875.00 Cubic Yard 1,250 $ 32.00 $40000.00 Backfill Excavation W'rth Cubic Yard Common Borrow and Compact Soil Monitoring (Laboratory Analysis of THC as Gasoline) Events (four samples per event) S~btotal Option 2: Off-Site Incineration Cubic Yard 1,250 Cubic Yard 1,250 Cubic Yard 1,250 Common Borrow and Compact Post-Burn Analyses Each 4 (BETX, Lead, and THC) Subtotal ON-~rrE TREATMENT AND/OR DISPOSAL Option 3: On-Site Incineration Mobilization Lump Sum 1 Incinerate Soil Cubic Yard 1,250 Backfill Excavation W'ffh Cubic Yard 1,250 Treated Soil and Compact Post-Bum Analyses Each 4 (BETX, Lead, and THC) Subtotal Transportation Incinerate and Dispose Excavated Soils Backfill Excavation With 1,250 $ 5.78 $ 7225.00 3 $ ~Zc $ N/C $ 64100.00 5.32 $ 6650.00 43.59 $54487.50 $ 7.~ $a95o.00 S N/C $ N/C $7OO87.5O $ $ $ $ $ $ $ $ FINISHING ACTlVmES Topsoil Borrow Seed, Fertilizer, and Mulch Erosion Mats Subtotal Cubic Yard 250 Acres 0.5 Square Yard 50 $ $1200.00 $ 14.10 $ 'I350.00 $ '"600;00 $ 705.00 $ 3055.00 Total Bid $757o5.00 The final amount of the contract shall be determined by multiplying the final measured quantities of the various items by the unit prices stated. The actual volume of soil excavated at the site for treatment will be determined in the field by a truck-count and/or by measuring the final excavation. In submitting this bid it is understood that the owner retains the right to reject any and all bic~s ana to waive irregularities and informalities therein and to award the contract in the best interests of the owner. It is understood that bids may not be withdrawn for a period of 30 days after the date on the bid form. Respectfully Submitted, 4-21-92 Date (A Corporation) tatum & Meter Service. ~-~_ .(An Individual) - Name of Bidder .. /..(A Partnership) Printed Name of Signer 11303 E~]~'inr 131'v~t Address 933-4800 H~, !~ 5534:] Telephone No. City, State & Zip Code EDA REQUEST FOR ACTION Originating Depmtment Approved for Agenda Agenda Section EDA Manager 4-27-92 Dan Donahue Item No. By: By: 5 MOTION AUTHORIZING EXECUTIVE DIRECTOR TO SIGN CERTIFICATE OF COMPLETION FOR THE WINNETICq WEST BARRIER-FREE HOUSING PROJECT (#466) A condition of the Development Agreement is that the EDA will furnish this certificate of completion. All obligations of the Developer have been satisfied and staff is requesting authorization to sign. MOTION BY ~ SECOND BY ~-~,~/-')( To: Review: Administration: Finance: RFA-O01 2.3 New Hope agrees to commence construction of the Project as soon as possible, but, in any event, not later than September 30, 1990, and thereafter to diligently pursue the same to completion, and, in any event, to substantially complete the same by not later than the Completion Date. 2.4 New Hope agrees not to make any changes in the Plans which require authorization by the City or action by the City Council pursuant to the zoning ordinance of the City, without first receiving, in each instance, the written approval of the Executive Director of the EDA; provided, however, and the EDA hereby agrees, that the EDA shall be deemed to have approved any requested changes if the EDA should fail to respond to any such request within thirty (30) days of New Hope's filing of a request with the EDA. 2.5 New Hope agrees to provide a one hundred (100%) percent payment and performance bond (which may also name other parties in interest, such as HUD) to insure that construction of the Project will be completed as required and that all costs of construction will be paid. The EDA agrees to accept security given by New Hope or New Hope's general contractor to HUD, provided such security is acceptable to HUD as to amount and terms and conditions thereof. The security required by this paragraph shall be, and is hereby determined to be, the only guaranty or security necessary, in the public interest, in connection with the Project. G The EDA agrees to provide a certificate of completion on or w~thin a reasonable time after Substantial Completion relating solely to the obligations of New Hope to construct the Project. Such certificate shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligations of New Hope to construct the Project. If the EDA shall refuse or fail to provide any certificate ~n accordance with this provision, the EDA shall, within thirty (30) days after written request by New Hope, provide New Hope with a written statement showing in adequate detail in which respect New Hope has failed to complete the Project in accordance with this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the EDA, for New Hope to take or perform in order to obtain such certificate. Each certificate provided for in this provision shall be in such form as will enable it to be recorded in the proper office for the giving of constructive notice thereof relative to the Property. 2.7 New Hope agrees not to assign, transfer, convey or pledge all or any part of its interest in this Agreement, the Property or the Project (other than in connection with a first 112 EAST ELMWOOD PLACE · MINNEAPOLIS, MN 55419 · April 13, 1992 Mr. Daniel J. Don~hue Executive Director Economic Development Authority City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Winnetka West Enclosed for your review and signature are four duplicate originals of a Certificate of C~¥~letion for the Winnetka Westbarrier-freehousingPro- ject. To refresh yourmemory,-the Economic Lmvelopment Authority agreed to provide such a certificate in paragra~ 2.6 of the Development A~3ree- ment for the project. Please have all four originals signed ~.nd notarized and then return three of them to me. The fourth original is for your records. It was a pleasure working with you on this project. will cross again in the future. S. Dore~ Mead President I trust our paths Enclosures SERVICES FOR MULTIFAMILY ROUSING -CERTIFICATE of COMPLETION April 20. , 1992 KNOW bTLMENBYTHESE PRESENTS that: WHEREAS, on September 10, 1990, the Economic Development Authority in and for the City of New Hope, a body politic and corporate under the laws of the State of Minnesota (the "EDA"), The New Hope Community Re- vitalization Corporation, a Minnesota nonprofit corporation, and New Hope Non-Profit Housing, Inc., a Minnesota nonprofit corporation (the "Developer"), entered into that certain Development Agreement for Winnetka West Barrier-Free Housing Complex ("Development Agreement") in which Developer agreed to develop that certain real property (the "Property") in the City of New Hope, County of Hennepin, State of Minnesota, which is legally described as follows: Lot 1, Block 1, Winnetka West WHEREAS, the Development Agreement provides that the Developer would construct a certain building on the Property intended for occupancy by physically handicapped persons of low, moderate or very low income (the "Project"). WHEREAS, the Development Agreement further provides that the EDAshall deliver a certificate of completion regarding the Developer's con- struction of the Project pursuant to the provisions of the Development Agreement. NOW, THEREFORE, in consideration of the premises, the Economic Development Authority in and for the City of New Hope hereby certifies that all obliga- tions of the Developer toconstructtheProject (including the dates for the beginning and completion thereof), as set forth in the Development Agreement, have beensatisfied. IN WITNESS WHEREOF, the Economic Development Authority in and for the City of New Hope has caused the execution of this instrument as of the day and year first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE I~s Executive Director -2- STATE of MINNESOTA ) ) OOUNTY of HENNEPIN ) SS . The undersigned, a notary public in and for said County and State, does hereby certify that Daniel J. D0nahue , personally known to me to be the Executive Director of the Economic Development Authority in and for the City of New Hope, subscribed to the foregoing instrument, appeared before me in person and acknowledged that he, being thereunto duly authorized, signed, sealed and delivered the said instrument as the free and voluntary act of said Economic Development Authority in and for the City of New Hope and as his own free and voluntary act, for the uses and purposes therein set forth. Given under my hand and notarial seal this~Ota~day of April, 1992. ~.,',',~'[1~ NOTARY PUBLIC- MINNESOTA ~"~:-~ HENNEPIN COUNTY Notary lgubl ic' This document was prepared by: Westminster Corporation 328 West Kellogg Boulevard St. Paul, MN 55102 EDA REQUF.~T FOR ACTION Originating Department Approved for Agenda Agenda Section EDA Manager 4-27-92 Dan Donahue ~) Item No. A By: By: ~,:/ 6 / DISCUSSION REGARDING REQUEST BY LaNEL FINANCIAL GROUP, INC. TO AMEND ASSESSMENT AGREEMENT FOR NEW HOPE TERRACE APARTMENTS This is back on the agenda as a discussion item. LaNel is the new owner of New Hope Terrace Apartments on 36th Avenue west of the railroad tracks. They have acquired, in addition to the complex, an agreement that previously existed with the City and the original developers. That agreement required the market value to go up every year by a minimum of 2% regardless of any actions by the assessor. Since the sale paid off the old housing bonds, the new owners have voided all subsidies for low and moderate income renters. Proposed by way of negotiations between LaNel and city staff is a scheme to retain 10 of the original 30 low and moderate income apartments if the city would release LaNel from the assessment agreement and allow the market value to be set by the assessor free of any artificial limits such as a 2% increase for every year. Since the apartments were partially developed through TIF bonds, those bonds and their repayment are very important to the city. That is the reason for the assessment agreement--to guarantee money would be available through the year 2004 to pay off the bonds. At the current time there is in excess of $500,000 in reserves. This would more than meet 2 years of bond payments. The EDA is considering the LaNel request as a way to provide housing for citizens in need and meet its future obligations to pay off the bonds. Yet to be developed is a specific plan to guarantee that a sufficient flow of TIF money would always be available. MOTION BY SECOND BY '- 0 (l ...... ' Review: Administration: Finance: RFA-O01 L Nel Financial Group, Inc. 4601 Excelsior Blvd., Suite 601 Minneapolis, MN 55416 (612) 920-5338 April 1, 1992 Daniel J. Donahue City Manager City of New Hope 4401 Xylon Ave. N. New Hope, MN 55428 Re: New Hope Terrace Apartments Dear Dan, As a follow up to our meeting on Wednesday and as an effort to address the concerns that the City has with our proposal of March 5, 1992, we would make the following suggestions. 1) The City agree to reduce the market value amount specified in the assessment agreement to what ever level we are able to negotiate value with the county assessor. What ever that number turns out to be would then be the minimum value for the assessment agreement going forward with the actual fair market value being determined each year through the normal county assessment procedure, but not less than that initial minimum value. 2) In consideration of the above, we will agree to retain .ten units under the low income housing criteria as defined in the housing revenue bonds initially issued on this project. 3) The ten units would remain low income for the full of the tax increment bonds. term 4) In the event, and only in the ~vent that the legislature approves the current legislatio~ allowing the use of excess tax increment to assist or subsidize low income housing, the City would agree to make up the difference between the low income rent paid by the residents and the then current market rate of those units from the excess tax increment funds. Dan, it should be clear that if the legislature fails to act we would still be obligated to maintain the ten units of low income housing. This proposal would bring in line the real estate taxes to a realistic and actual market value, allowing this project to operate in an economically sound fashion and be the asset that everyone hopes it will be to the City of New Hope. Additionally, the community will have available to its residents affordable housing. Please let me know if you have any questions and also expect this to be presented to the City Council. when you Very truly yours, Paul G. Brewer President PGB/lp cc: Frank Lang Greg Bronk